The ruling UML and Congress have formed a ten-member high-level political mechanism for effective governance. The previous joint or coalition governments were not effective due to lack of sufficient dialogue, coordination and cooperation between the power-sharing parties and the power-equation was broken in a short period of time.

As a result, the country continued to suffer from political instability and low economic development. Compared to those past experiences, the mechanism comprising the top leaders of the party and the working groups under it have been seen to be active.

News of their regular meetings have been coming for the past two months. Two weeks ago, this mechanism formed three committees related to constitutional amendment, parliamentary effectiveness and public service effectiveness and good governance.

However, it was seen that there is no political priority to create such committees for the purpose of implementing federalism and revitalizing the economy, which should be given immediate priority. It cannot be argued that constitutional amendment and good governance itself are issues related to federalism. As much as the process of revising the constitution is likely to be complicated and controversial, there is no reason to wait for it to improve the effectiveness of the federal state system.

Likewise, the need to address the deepening complexities of the economy at the highest level of political ownership is now inevitable. The effectiveness of both these aspects are complementary to each other. The result-oriented implementation of the federal state system means that it broadens the economic growth and prosperity of the country as a whole. The economy becoming more organized on the scale of the previous regime means the success of the current political system.

Regardless of whether a committee should be formed or not, the state government has not taken the necessary seriousness of the continuous review of the governmental efficiency of the state system during the implementation of federalism for the past seven years.

Political leadership has not seen the prudence to address the questions raised on the legitimacy of provincial governments and the functionality of local governments. The same is the case with the economy. The economy has been taxed for the past five years. The source of revenue is more miserable than before. Both the capital budget ratio and the ability to spend appropriated funds are declining rapidly. The trade deficit is now catastrophic.

In reality, federalism and economy, which should be the reference of the most political interest, concern and importance, have become like two twin orphans of the state, which no one has unconditionally owned, and which is gradually becoming miserable. Whereas, it is not possible to change the destiny of the country if these two main issues are not addressed by putting all other issues as second priority. 

Questions on federalism

The bias that has been seen from some political circles to completely abolish federalism not only as a system but also as a concept is dangerous. A factual counter to the anti-federalist rhetoric created by the political remnants of the former unitary system and newly emerging, non-ideological political forces has become inevitable.

It would be immature and foolish to conclude that federalism has failed now. However, it is not possible to shore up the deficiencies and weaknesses observed during its implementation and strengthen it. That responsibility belongs to the supporters of the federal system and the implementing powers of the current constitution. 

Recently, two arguments against federalism have gained prominence. First, the system of the seven provincial governments has not improved public service delivery and has only increased government costs. Second, the overall provincial structure has become a platform for cadre management for political parties. For this reason alone, there is no need to keep the state government and the state assembly.

has not been an effective counter to such arguments. Prime Minister and UML President KP Sharma Oli, Congress President Sher Bahadur Deuba, and Maoist Center President Pushpa Kamal Dahal Alopalo have been the heads of government since two cycles of elections were completed in the past. But it is not seen that the leaders of that height have tried to build a continuous and effective participation in favor of federalism and counter reactionary ideas. The sometimes rambling speeches are less about facts, analysis and positive outcomes and more about empty political arguments.

State system by whatever name, sub-national or regional units of the state apparatus are essential. Even the products of Panchayat politics, who are now standing in the forefront and opposing federalism, need to look back to history. During the direct rule of the king, the country was divided into five development zones. In the fourteen zones, the zone chiefs ruled by political appointments.

Now there are seven provinces in its place. Seventy-five districts were active units of political administration. Now there are surface districts but their status as a government unit is very limited. The number of more than four thousand local bodies or panchayats has decreased to 753.

Therefore, a comparative study is needed on the argument that federalism has increased administrative expenses excessively. A wrong comment should not be made on the basis of superficial arguments without such study. And, the politicians have not adopted the style of researching more on these facts and making a concept in favor or against only on that basis.

The state is not aware of systematic findings and conclusions. At a glance, it does not seem that administrative expenses have increased excessively due to federalism. However, federalism is a relatively costly arrangement and its justification can only be established by decentralizing effective service delivery. 

More importantly, just as the regional political faces of the Panchayat system were the Achaladhis, the visible political faces of the federal system are the Chief Minister and the state governments. The magistrates were appointed by the king. State governments are elected by the people. This difference should not be overshadowed by any conjecture. For all these reasons, it is not appropriate to make the provincial structure an attack target of ad hoc thinking. 

The legitimacy of the local level is being proven more in federalism. Behind the seeming attraction of becoming a mayor rather than being an MP is a strong element of power concentration. Good results have been seen from the policy-making, financial budget and planning and the rights of local service providers at the local level. Their role in the Covid pandemic was widely appreciated. During the recent severe floods and landslides in Bagmati province, relief, rescue and livelihoods are normal  The leadership of the local level not only worked very carefully to make a

, but also made great efforts to restore roads, water supply, electricity and communication links. The obvious reason for this was the freedom of decision, economic authority and administrative machinery given to them by the Federal Constitution. Although the state system is unitary, the administration science of the world has not given an option to make the local level more powerful and capable with means, resources and skills. There is no need to question the propriety of the local level. Federalism has made them stronger. 

With the completion of the seven-year tenure of elected representatives at the union, state and local levels, fresh data and insights have become available about the various dimensions of the operation of this system. These facts and experiences are important in formulating new laws, designing capacity building programs related to subnational public financial management and public service delivery, improving governance styles and addressing transparency issues.

In addition, the institutional efficiency of the Ministry of Federal Affairs, the National Natural Resources and Finance Commission, the civil service and various other agencies is far below expectations. The situation is further aggravated by the appointment of persons who do not have basic knowledge of federalism in high positions like ministers, secretaries or commissioners. There is a clear lack of research-based policy-making bodies within the government system. Special attention should be given to conducting systematic research through higher educational institutions.

federal economy

The economy is under intense pressure. But what has not been realized at any level of the government system, the most important reason is the inability to run the economy according to the structure, style and essence of the federal government system. The economy has turned into a crisis due to the strong decline of the consumer, the market and the investors.

The local level to raise the confidence of the consumers, the provincial level to speed up the market and the federal level agencies to reawaken the confidence of the applicants should act in coordination. Small, medium and domestic industries are the basis of the Nepalese economy in particular, and consumption was boosted by the financial mobilization of cooperatives.

Both of these areas are under the authority of the local level. But the local level governments have not been aware of the methods and methods to contribute to their promotion and smooth operation. The federal government has rarely helped create the legal and institutional environment to unleash that potential.

The market has not been able to run due to the fact that even the local and regional levels could not spend the available budget. At present, when the public finances of the federal level are under extreme pressure, the economy can be saved from recession by increasing the spending of the provincial and local levels.

Some non-financial administrative steps have not been taken for this. Even when resources are available, the chronic disease of the federal government, which cannot spend, has spread to the local level. The lack of political interest and technical strategy to address it is evident.